Monday, August 3, 2026 2:00 PM IST
Event Participants
Executives
2 Kuldeep Jain (Founder and Managing Director), Nikunj Ghodawat (Chief Financial Officer)
Analysts
8 Apoorva Bahadur (IIFL Capital), Atul Tiwari (JPMorgan), Ishan Verma (Antique Stock Broking), Neil Ostwal (PGIM India Asset Management), Nirmal Gore (Aditya Birla Sun Life), Puneet Gulati (HSBC), Rajesh Vora (Jainmay Venture), Ryan
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Revenue | ₹832 crores | +107% YoY, driven by doubling of both segments; RE Power Sales ₹528 crores (+47% YoY), RE Services ₹300 crores (6x YoY) |
| EBITDA (Reported) | ₹462 crores | +68% YoY; adjusted EBITDA ₹494 crores (+74% YoY) |
| EBITDA Margin - RE Power Sales | 84% | Improved from 76% in Q1 FY26 on operating leverage; SG&A to income declining as capacity scales |
| EBITDA Margin - RE Services | 11.2% | Improved from 8.7% in Q1 FY26 |
| PAT | ₹55 crores | Positive, driven by 2x revenue growth, margin expansion in both segments, and lower interest costs |
| Gross Block | ₹14,138 crores | Reflects continued capacity build-out |
| Net Debt | ₹11,809 crores | Up from ₹9,684 crores at March 31, 2026; 38% of debt against under-construction assets |
| Equity Base | ₹5,831 crores | Strengthened post-listing |
| Weighted Average Interest Rate | 8.4% | Down 100 bps from 9.4% in April 2025; project finance costs lowered |
| Credit Rating | AA- | Upgraded from A+; enables first domestic corporate bond issuance |
| Total Contracted Capacity | 6.0 GW | 3.5 GW operational; 2.5 GW under execution; RE Services adds 682 MW operational + 147 MW under execution |
| New Capacity Commissioned (Q1) | 500 MW | 400 MW RE Power Sales + 100 MW RE Services |
| Operational Portfolio Tariff | ₹3.93/unit | For 3.5 GW operating capacity |
| Under-Execution Portfolio Tariff | ₹4.00/unit | For 2.5 GW contracted under execution; tariffs stabilizing/rising |
| Trailing 12-Month Capacity Addition | 1,743 MW | Up from 449 MW in prior year period; STU + rooftop grew from 450 MW to 1,200 MW |
Geographic & Segment Commentary
RE Power Sales: Revenue grew 47% YoY to ₹528 crores with EBITDA margins expanding from 76% to 84%. Segment EBITDA of ₹334 crores came from projects operational for over 12 months, with ₹125 crores from newly commissioned assets still stabilizing. Operational capacity of 3.5 GW across seven states evacuating power, with three additional states contracted and under execution.
RE Services: Revenue surged 6x YoY to ₹300 crores on EPC execution momentum. This is an order-book-driven business where customers (e.g., Sun Pharma, Himalaya Drugs, Honda Motorcycles) own the assets while CleanMax provides EPC, O&M, and transmission infrastructure access within its farms. Order book stands at 147 MW with an execution cycle of under 12 months. EBITDA margin improved to 11.2% from 8.7%.
Data & AI Segment: 42% of contracted capacity; grew ~10x between March 2024 and March 2026. Deals announced with Meta, Apple, Google, and Amazon in calendar 2026. CleanMax estimates 35% market share of hyperscaler clean energy business in India. Partners with data center operators including NTT, STT, L&T Data, Equinix, and Iron Mountain.
Industrial/General Corporates Segment: Contracted volumes doubled in two years (~46% CAGR) for non-Data & AI industrial customers. Penetration of bilateral green power among industrial consumers remains low at just 7%, implying 93% headroom. Customers save 25%+ on energy costs while lowering carbon footprint.
Company-Specific & Strategic Commentary
Capacity Addition Acceleration: Commissioned 500 MW in Q1 FY27; trailing 12-month addition run-rate reached 1,743 MW (up from 449 MW previously). STU and rooftop additions grew from 450 MW to 1,200 MW annually, with plans for ~500 MW/year of CTU capacity (one large site per year). Management emphasizes the organization is now supply-constrained rather than demand-constrained.
FY28 EBITDA Guidance: Issued first-time guidance of minimum ₹3,000 crores EBITDA in FY28, representing ~2.4x FY26 EBITDA of ~₹1,290 crores. Based on minimum 4.6 GW opex sales capacity by April 1, 2027 (3.1 GW at FY27 start + 1.5 GW new additions). Steady-state net debt corresponding to this guidance is estimated at ₹16,000 crores.
BESS Expansion: Greenlit first BESS investment at an STU project in Rajasthan; signed MOUs with three clients in the past month. Targeting three opportunity types: solar-only states (Uttarakhand, Haryana), markets with day-evening price differentials (Maharashtra), and customer tenders for BESS-as-a-Service. Two-hour storage configurations; expects ₹3.5+/unit for BESS service alone.
Financing & Capital Markets: Credit rating upgraded to AA-, enabling first domestic corporate bond issuance. Weighted average cost of debt down 100 bps to 8.4%. Debenture trust deed amended to move security cover to 1x (from 0.7x-1.25x range) to remain consistent with upcoming corporate bond terms. Average PPA tenor of 23 years vs. 18-19 year loan profile.
ALMM-II Deferral Benefit: Government allows projects commissioning before March 31 to use modules with imported cells (₹60 lakhs/MW cheaper than Indian-made cells). CleanMax pulling forward construction schedules to capture savings on contracted volumes; also seeing accelerated decision-making from existing clients at select brownfield STU sites in Maharashtra and Karnataka.
Client Quality & Repeat Business: New contracted capacity quality remains high: 80%+ of volumes from AA/AAA/multinational-rated clients (decade-long trend), tariffs stable at ~₹4/unit, and ~80% of new volumes contracted with existing clients. Nearly 600 unique C&I customers across 10 states.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| FY27 New Capacity Addition | ≥1.5 GW (opex sales capacity) | 400 MW added in Q1; management confident based on contracted pipeline, execution capability improvements, and CTU bay allocations at Koppal (543 MW) |
| FY28 Minimum EBITDA | ₹3,000 crores | ~2.4x FY26 EBITDA; assumes 4.6 GW minimum opex capacity by April 1, 2027; new volumes have similar profitability profile (tariff ~₹4/unit, 80% repeat clients) |
| CTU Curtailment | Expected to persist through FY27 | Bikaner project experiencing ~70% backdown; management advises assuming continuation for rest of fiscal; PGCIL rectification timeline uncertain |
| Cost of Debt | Expected to decline further | Enabled by AA- rating, domestic bond market entry, and improving asset-liability matching |
| Market Opportunity | Data & AI: 30-60 GW new RE capacity over 5 years | Each 1 GW data center IT load requires ~6 GW RE capacity + storage, translating to ~₹40,000 crores investment per gigawatt |
Risks & Constraints
| Risk | Context |
|---|---|
| CTU Grid Curtailment | Bikaner project experiencing |
| Execution Capacity Limits | Cannot sign contracts exceeding execution capability; management explicitly noted "you cannot sign what you cannot execute." While trailing 12-month additions reached 1,743 MW, further scaling to ~4,000 MW additions over two years is possible but 3x growth from current levels is not executable. |
| Competitive Entry | Large players (Adani, Reliance, NTPC) express interest in C&I segment. Management counters with 15-year focus, 600+ customers, 80% repeat volume, multi-state presence, and 14% market share (up from 12%) - markets remain fragmented, not winner-takes-all. |
| Tamil Nadu Political Transition | One-two months of approval "flux" post-government change; management confirms issues resolving and approvals moving again as of last monthly project review. |
| Hyperscaler Market Share Dilution | 35% market share of hyperscaler business is "very high" and may come down; management accepts this given volumes are "exploding" and multiple vendors will be needed. |
Q&A Highlights
ALMM-II Deferral Impact
- Question: How will CleanMax take advantage of the ALMM-II deferral allowing imported cells until projects commission before March 31? (Apoorva Bahadur)
- Answer: Benefit is ~₹60 lakhs/MW price differential between Indian-made and imported cells. Management is pulling forward construction schedules for planned projects to capture savings. Some incremental sales acceleration visible at brownfield STU sites in Maharashtra and Karnataka where rapid commissioning is possible before the December 31 deadline. (Kuldeep Jain)
CTU Capacity Addition & Koppal Bays
- Question: Will the second bay at Koppal commissioning by March-27 be too close for comfort for the 1.5 GW FY27 target? (Apoorva Bahadur)
- Answer: Management confirmed fungibility across bays and spare evacuation capacity in the first bay. Even with slight slippage in the second bay, the target remains achievable. (Kuldeep Jain)
Debenture Security Cover Change
- Question: Why reclassify debentures from unsecured to secured with 1x coverage (from 0.7x)? (Apoorva Bahadur)
- Answer: The debenture trust deed allowed 0.7x-1.25x range. Rather than moving to 1.25x post-repayment, management chose to standardize at 1x, consistent with terms for the upcoming corporate bond issuance. Not an increase but a simplification. (Nikunj Ghodawat)
BESS Business Development
- Question: How is the sharp pickup in battery installations playing for CleanMax, and are PPAs incorporating batteries? (Atul Tiwari)
- Answer: BESS is a natural evolution (rooftop → offsite → wind → carbon → BESS). First BESS investment greenlit (Rajasthan STU), MOUs signed with three clients in the past month, vendor contracts done. Three target segments: solar-only states, evening-peak pricing markets (Maharashtra), and BESS-as-a-Service tenders. Typically 2-hour storage; ~₹3.5+/unit for porting service alone. (Kuldeep Jain)
Hyperscaler EAPA/VPPA Contracts & Merchant Prices
- Question: How does declining merchant solar pricing impact EAPA/VPPA contracts? (Nirmal Gore)
- Answer: Net tariff to CleanMax is identical regardless of merchant market movements - assured revenue on per-unit basis (~₹3.7). Hyperscalers retain option to convert to physical supply as their data centers ramp up in India. India viewed as major data center market, not just an offset source. (Kuldeep Jain)
Competitive Positioning vs. Large Players
- Question: How does CleanMax compete against Adani, Reliance, and NTPC entering C&I space? (Nirmal Gore, Rajesh Vora)
- Answer: Advantages include 15-year exclusive C&I focus, 600+ customers with ~80% repeat volume, wind+solar capability across 10 states (critical for evening peak), brownfield expansions at scale, and 14% market share (up from 12%). Market is fragmented, not winner-takes-all. Hyperscalers require multiple vendors given volume scale - existing relationships with proven suppliers like CleanMax will secure "more than fair" share. (Kuldeep Jain)
Curtailment Quantification
- Question: Can you quantify losses from curtailment for the full quarter? (Unidentified Participant / Axis Capital)
- Answer: Run-rate EBITDA at FY26 end was ₹1,870 crores; CTU project represents
13% (₹240 crores). At ~70% curtailment, full-year impact is ~₹170 crores. Management advises assuming curtailment persists through FY27; PGCIL timeline remains unclear. (Kuldeep Jain)
2028 Peak Debt Level
- Question: What peak net debt corresponds to ₹3,000 crores FY28 EBITDA guidance? (Ryan)
- Answer: Steady-state net debt of ~₹16,000 crores corresponds to that EBITDA level, reflecting healthy debt-to-EBITDA metrics. Higher interim debt reflects under-construction assets yet to generate cash flows. (Kuldeep Jain)
RE Services Business Model
- Question: Is RE Services an order-book-driven EPC business? (Ryan)
- Answer: Yes - for customers wanting to own assets (e.g., Sun Pharma, Himalaya Drugs, Honda Motorcycles), CleanMax provides EPC, O&M, and transmission infrastructure within its farms. Revenue mix includes upfront EPC margins and recurring annuity from O&M + transmission usage. Order book at 147 MW, execution cycle under 12 months. (Kuldeep Jain)
Growth Sustainability
- Question: Can 10x Data & AI and 2x industrial growth be repeated in next two years? (Rajesh Vora)
- Answer: Contracted capacity tripled from 1,850 MW to 6,000 MW in two years (~4,000 MW added). Management confident of matching or exceeding 4,000 MW additions over next two years, but 3x growth from current base is not executable - "you cannot sign what you cannot execute." Law of large numbers applies. (Kuldeep Jain)
Tamil Nadu Approvals
- Question: Any delays in C&I project approvals due to new government? (Neil Ostwal)
- Answer: One-two months of "flux" post-administration change, now resolved. Monthly project reviews confirm approvals moving and issues sorted. No structural continuing delay. (Kuldeep Jain)
Key Takeaway
CleanMax delivered a strong Q1 FY27 with revenue doubling to ₹832 crores (+107% YoY), EBITDA up 74% to ₹494 crores, and PAT at ₹55 crores, driven by 47% growth in RE Power Sales, 6x growth in RE Services, margin expansion in both segments (84% and 11.2% respectively), and 100 bps reduction in cost of debt to 8.4%. The company commissioned 500 MW in the quarter, bringing total contracted capacity to 6 GW, with a demonstrated trailing 12-month execution run-rate of 1,743 MW. Management issued first-time FY28 EBITDA guidance of minimum ₹3,000 crores (2.4x FY26) on 4.6 GW minimum opex capacity. Key strategic thrusts include Data & AI (42% of capacity, 35% hyperscaler market share, 10x growth over two years), BESS expansion with first projects greenlit and client MOUs signed, and first domestic bond issuance enabled by AA- upgrade. Watch items include 70% CTU curtailment at Bikaner (₹170 crores annual impact if persistent), execution capability limits (~4,000 MW additions over two years deemed feasible), and competitive entries from large players into C&I markets. Management remains confident in meeting or exceeding the 1.5 GW FY27 capacity addition guidance with contracted pipeline and new client momentum.